Estate Administration - The 3 Stages

While each estate administration presents different facts - the terms of the Will or Trust, the amount and composition of the assets, each estate in New Jersey goes through the same 3 stages

·         Probate.  The first stage is when the Will is offered for probate at the local Surrogate’s Court.  This is a very simple process in which your executors present the Will, and then they are issued Letters of Testamentary, which will give the Executor(s) the authority to carry out your wishes as set forth in your Will.  This is done by making an appointment with the Morris County Surrogate’s Court (10) ten days after the date of your death.  Alternatively, if the Executor(s) decide to attain an attorney to assist them, the attorney’s office can often have the documents signed at their office. If there is no Will, an Administration is opened where your Administrators are issued Letters of Administration.  Letters Testamentary and Letters of Administration give your representative the power over your assets and to settle any liabilities.

·         Gather Assets; Pay Liabilities.  The second stage is gathering together all your assets, determining their value, paying any debts or liabilities (including taxes if any) and filing any necessary tax returns.  Until the tax returns are filed and approved (or a waiver is completed because no taxes are due) New Jersey has a lien on your assets and they cannot be fully distributed. 

·         Closing the Estate.  Once the tax returns are approved, New Jersey will issue a Waiver, which releases its lien on the assets.  The Executor then normally accounts to the beneficiaries what came into the estate, what went out, and what is left to distribute.  This informal accounting is coupled within a “Release and Refunding Bond” where the beneficiaries agree to their distribution, waive any claim to be entitled to more, and release the Executor from liabilities.  The accounting and “Release and Refunding Bonds” will act to close the Estate.  You should anticipate that the entire Estate Administration process will be a 14-24 month process.

The Executor/Administration has many responsibilities beyond these.  We find that since people are generally taking on the job of Executor/Administrator for the first time, it appears overwhelming.  By looking at the job in stages, it becomes more manageable and doable.  Many Executors/Administrators seek professional advice because even if they can consider the job in stages, their lack of experience in that role, and not knowing their responsibilities and questions to ask, potentially opens them up to liability and claims from the beneficiaries or tax authorities. 

NJ State Library Help Site

Everyone knows that times are tough right now - but what you may not know are NJ state resources that might be able to help a friend or family member who is struggling at this time.  Jim Shepard, Esq. kindly brought to my attention that the New Jersey State Library has created a website to assist New Jersey residents and businesses with resources to help them if they find themselves in need of assistance.

The site has links and references to the following areas:

  • New Jersey Works Tools
  • New Jersey Financial Tools
  • New Jersey Housing Tools
  • New Jersey Health Tools
  • New Jersey Parental Tools
  • Tools for Seniors

NJ Court Ruling that NJ May Count Promissory Notes as Available Resources

One of the biggest questions in determining Medicaid eligibility for long term care is what are the person's "Available Assets" our "Countable Assets".  The Countable Assets must be spent down to $2000/$4000 for Medicaid eligibility (depending on the program being applied for).  A new case decided today says that New Jersey can look at certain promissory notes as being Countable Assets.

Elderlawanswers.com reports:

In a long-running case that has bounced back and forth between two federal courts, the Third Circuit Court of Appeals rules that New Jersey's Medicaid agency may analyze promissory notes as trust-like devices and count the notes as available resources. Sable v. Velez (U.S. Ct. App., 3rd Cir., No. 10-4647, July 12, 2011).

A group of New Jersey residents lent money to close relatives in return for promissory notes. After the individuals applied for Medicaid, the state denied their applications, claiming that the promissory notes were trust-like instruments that qualified as available resources.

The residents filed suit in federal district court seeking to enjoin the state from counting the notes as available resources. The district court denied the request for preliminary injunction, holding that there was nothing in the Medicaid Act or the POMS that prevented the state from analyzing promissory notes as a trust-like device if the situation warranted it. The residents appealed to the U.S. Court of Appeals for the Third Circuit, which vacated and remanded, holding the district court committed legal error when it analyzed the notes as trust-like devices without first determining whether they would be counted as resources under the regular resource-counting rules. The court agreed with the plaintiffs' argument, which was based on the federal statutory requirement that the Medicaid program may not use eligibility rules that are more restrictive than those used by the SSI program (see 42 U.S.C. 1396a(a)(10)(c)(i)(III)).

The district court again denied the preliminary injunction, holding that the relationship of the parties and the terms, amount and timing of the loans indicated that the loans were not bona fide cash loans or promissory notes. The residents appealed.

In a ruling that is "not precedential," the U.S. Court of Appeals for the Third Circuit affirms, holding that the Medicaid applicants are not entitled to a preliminary injunction because they "failed to show that it was more likely than not that their notes would be considered cash loans or promissory notes under the regular SSI resource-counting rules or that their notes should not be considered trust-like devices."

 For the full text of this decision, go to: http://www.ca3.uscourts.gov/opinarch/104647np.pdf

 

Considering Becoming a Florida Resident? Cut those Ties to New Jersey

Truth - New Jersey is the most expensive state to die in.  Consequence - A great estate planning technique is to not be a New Jersey resident when you die.  

Many people have second homes in Florida and say "well, I'll just become a Florida resident." While this is a great idea, it is not always so simple to carry out.  Guest blogger Steven A. Loeb, Esq. points out below that there are threshold requirements to becoming a Florida resident.  If you don't carefully meet the Florida requirements, and you continue to maintain a presence here in New Jersey (ie: you still have a home here) then you run the risk of New Jersey claiming you are still a resident of the lovely garden state, and thus subject to its tax scheme upon death.  New Jersey has an state estate tax with a $675,000 threshold, Florida has no estate tax - so getting Florida residency right has real bottom dollar consequences.

In today's legal environment, the question of an individual's state of residency can be quite important in determining tax implications, both while the individual is alive and upon their death. Each state where an individual resided and owned property upon his/her date of death will make its own determination regarding the decedent's domicile (i.e. a legal term having a meaning of residing in that state with an intent to remain indefinitely).

Often, an individual wishes to relocate to Florida in order to take advantage of many of the tax favorable statutes in that state. However, many times problems arise when the relocated individual maintains significant contacts with the former state, which creates doubts as to whether residency was changed to Florida.

There are several steps you can take to clarify that you have in fact become a Florida resident in case a tax return is audited by your former state claiming that the state of residency was not changed and there is an attempt to subject the entire estate to tax in the former state.

Steps in Becoming a Florida Resident

1) File a Declaration of Domicile in the Town Clerk's office in the county of residence;
2) Register to vote in Florida and actually take the time to vote in elections;
3) Be physically present in the state of Florida on average for 8 months out of each year (at least 6 months and 1 day);
4) Change your primary care physician and all additional physicians to the state of Florida;
5) Have all prescriptions transferred to a pharmacy in the state of Florida;
6) Register your car in Florida and obtain a Florida driver's license. and notify your insurance carrier that you are now a Florida resident;
7) File Income Tax Returns as a Florida resident;
8) Purchase or rent a house or condominium in Florida and actually move into that location;
9) Transfer primary bank accounts to a Florida bank: and
10) Draft a Last Will and Testament, Power of Attorney. and Living Will/Health Care Directive stating that you are in fact a Florida resident.

These are just some of the necessary action items to consider when relocating to Florida. In order for the taxing authority of your state to not challenge your domicile/residence either during your lifetime and upon your death, it is important to consider the above information when relocating, as well as to get professional advise about your personal circumstances.

Deirdre's note - A great blog about Florida Law issues can be found at South Florida Estate Planning Law authored by my colleague David Shulman.

 

Meet our Toms River NJ Attorney Team

 

We recently opened our Toms River office to service the needs of our existing clients who had moved to Ocean County as well as to offer services to new clients who wanted a local law firm with a large pool of talented attorneys.  Our Ocean County and Monmouth County clients now have a convenient office to discuss estate planning, elder law, probate and real estate issues with attorneys who focus in those areas of law.  Other attorneys also use this office as a base to meet with clients on matters dealing with litigation, business law and family law.

  • Vincent DiMaiolo, Jr., Esq. - Managing Shareholder Toms River Office.  Vince is a long-time Manchester resident who spearheaded the drive to open an office in Toms River to bring our legal services to his friends and neighbors. He concentrates his practice in the area of commercial litigation, with an emphasis on creditors rights, bankruptcy and real estate related litigation.
  • Henry H. Fein, Esq. - Shareholder, Tax, Trust and Estates.  Hank co-chairs the Corporate and Tax Departments.  In assisting clients over the years, he has seen clients retiring from North Jersey to Monmouth and Ocean County, but continuing to seek the services of a North Jersey law firm with whom the clients and their friends and neighbors have a long standing relationship.
  • Deirdre R. Wheatley-Liss, Esq., LL.M (Taxation), CELA - Shareholder, Tax, Trusts and Estates, Elder Law.  As both a tax attorney and a Certified Elder Law Attorney, Deirdre has seen the law and client's circumstances becoming continually more complicated over the years.  Her goal is to offer the efficiencies a larger legal  practice to clients with the benefits of  local service. 
  • Eric S. Kapnick, Esq. - Shareholder, Real Estate.  As a residential and commercial real estate attorney, Eric has assisted clients in all markets, good, bad and flat, to buy, finance and sell real estate.  Our Toms River office offers the convenience of local closings with the knowledge of a department of staff and attorneys devoted to real estate.
  • Stacey C. Maiden, Esq. - Of Counsel, Trust and Estates, Elder Law, Guardianship, Real Estate.  Stacey comes from Monmouth County to join our Ocean County office to expand service to local residents in estate planning, elder law and real estate. She also has significant experience in guardianship issues, bringing a new area of practice to clients.
  • Steven A. Loeb, Esq., LL.M (Taxation) - Associate, Tax, Trust and Estates.  Steve focuses much of his practice on asset protection, including the use of domestic asset protection trusts.  These trusts can be a valuable tool for Monmouth and Ocean county residents such as business owners, doctors, traders, real estate investors, and other professionals who are concerned with claims from creditors.
  • Kristen A. Klics, Esq. - Associate, Real Estate.  Kristen's goals are to help people buy and sell their homes and deal with issues of aging.  She often works to educate first-time home buyers, as well as assists seniors who are moving out of their homes to another living arrangement.
  • Christopher Koos, Esq. - Associate, Litigation.  Chris is a Toms River native who works in our litigation practice area.  Chris helps clients resolve the disputes within the offices of the Ocean County Surrogate, or before the Ocean County Superior Court. The Toms River office has allowed Chris to bring service from our attorneys based in Parsippany to his clients who have needs in Ocean County.  

Our Toms River office is conveniently located at at 833 Route 37 W., Suite B. Toms River, NJ 08755.  Click here for directions, and look for the building below.



 

Playing the State Income Tax Game

Why did LeBron James cross to the Miami Heat? Because his tax adviser said so of course! At least, that is what is posited in a very interesting article "Play The State Income Tax Strategies Game Like LeBron James" by Trace Mayer at Citizen Economists.

As a free agent, LeBron had options. He could go wherever he thought he could win a title, get the most money in endorsements, where he could enjoy the best Cuban food and beach lifestyle, and maybe all three. After being courted by half a dozen teams, he had some really nice offers and some potentially lucrative deals. The biggest players were Cleveland, the New Jersey Nets, New York Knicks, maybe even the Bulls or the Clippers and of course Miami. LeBron finally picked Miami. Miami could arguably offer a lot, but I wouldn’t doubt that his state income tax attorney whispered a few sweet words into his ear about income tax strategies, like “$2-5 million a year,” that may have influenced his Decision."

The math really makes a difference when you are earning $44 million a year.  What was LeBron looking at with the other teams wooing him:

  • Cleveland Cavaliers (Ohio) - state income tax bill - $2.6 million
  • Chicago Bulls (Illinois) -- state income tax bill -- $1.65 million
  • New York Knicks (New York) -- state income tax bill -- $3 million
  • LA Clippers (California) --state income tax bill  -- $4.6 million
  • New Jersey Nets (New Jersey) -- the winner!, with a state income tax bill of over $4.8 million

And the state income tax bill for the Miami Heat  (Florida) - zero, nothing, nada.  Hmmm, so maybe there is something to the concept of people don't want to come to  New Jersey because of the taxes.

This does illustrate an interesting tax planning concept regarding gifting. Many times we  will recommend to clients that they create a trust with situs in a state other than New Jersey. The trust's income would then be taxed by the state income tax rates, or not taxed all, in a state like Florida where there's no income tax.  This is done by having a trustee who is resident in the state that has no income tax.

 

NJ Division of Taxation has a New Acting Director

The State recently announced that Michael H. Bryan will be the new Acting Director of the New Jersey Division of Taxation. Per the press release, Bryan is to lead the Division of Taxation in the direction of enhanced communication and support with taxpayers.

The Division of Taxation could use an internal audit on practices and procedures to act more effectively.  While I don't usually find a problem with written communications, it takes several weeks for them to get from the mail room to the person's desk.  My other issue is on phone coverage - when  I call I am often left to a phone that rings and rings with no answer.  

As Bryan is coming from the private sector (Comcast to be precise) hopefully he will bring some ideas oriented at efficient customer service with him.

Life Estates - Estate Tax and Inheritance Tax Consequences

Life estates are commonly used in elder law asset protection planning.  Mom owns a house worth $400,000.  She gives the house to her children(a "remainder interest"), and keeps the right to live in the house during her lifetime (a "life estate interest").  The gift of the remainder interest is "transfer" for Medicaid purposes, and starts the clock on the 5 year lookback period.  

The gift of the house subject to a life estate is a popular asset protection planning technique because it is easy to understand and less invasive to lifestyle than other transfer techniques. Making a gift of a remainder interest simply involves the attorney preparing a deed and associated real estate transfer documents.  There are no realty transfer tax consequences - realty transfer tax is not assessed in New Jersey for transfers without consideration (i.e.: a gift). Also, using a life estate technique not much changes from a practical perspective as the life estate holder (ie: Mom) continues to be responsible for all property taxes, maintenance and upkeep - and is still entitled to the Senior property tax rebate.  Perhaps most importantly, you don't spend your house, so it is emotionally easier to give away an interest in a house than to give away cash dollars that you may still want to spend.  For those who think they are at least 5 years away from a nursing home, a transfer of a house subject to a life estate can be a home run as the house tends to be the most valuable single asset.

But what happens from a tax perspective when the owner dies? (Assuming the death is not in 2010 when we have no federal estate tax - see my prior post on estate tax implications for deaths in 2010)

If you give away an asset and keep a life estate in that asset, the life estate acts like a "string" that pulls 100% of the value of the asset into your taxable estate.  From an estate tax perspective, this mean that (1) 100% of the value of the house is included in decedents taxable estate, and (2) the cost basis of the house is "stepped-up" to the value of the house on date of death (IRC 2036).  So, if Mom bought the house for $40,000 and it is now worth $440,000, Mom's estate includes the house valued at $440,000, and kids get the house with a $440,000 basis.  When they sell the house for $450,000 down the road, then they only have $10,000 of capital gain.  The $400,000 of appreciation that occurred during Mom's lifetime essentially disappears (you potentially pay estate tax instead).  If the total estate is less than $675,000 (New Jersey) or $1,000,000 (federal starting in 2011 - unless congress changes it), then there will be no estate tax due.  If there is a New Jersey estate tax, the rate ranges up to 16% on amounts over $675,000 - this is far less than the capital gains tax (15% federal plus 7.5% NJ) on $400,000 if Mom simply gave the house to the kids without keeping the life estate.  

In New Jersey we also need to contend with the Inheritance Tax if the remainder beneficiaries are not children - for example, Aunt gives her house to her nieces and nephews and retains a life estate.  The Inheritance Tax is a separate tax from the estate tax that is assessed against a beneficiary based on their relationship to the decedents - transfers to spouses and children are exempt, transfers to other family members are not.  For example, when Aunt dies, the life estate acts to make 100% of the value of the house subject to inheritance tax (NJAC 18:26-5 et seq).  So, nieces and nephews get the house, but they need pay an inheritance tax at the rate of 15%-16% with no exemption.  The inheritance tax is a credit to the estate tax, so you don't end up paying both taxes if the estate is subject to estate tax and the beneficiaries are not children or spouses.

The benefits of making  a transfer of a house subject to a life estate can significantly outweigh any estate tax or inheritance consequences in many situations.  The key is to get advise for YOUR situation to see if transfer of a house subject to a lift estate make sense to protect your assets from a Medicaid spend-down.

Real Estate Tax Appeals - Filing Thresholds have Changed for 2010

Real estate tax appeals for both commercial and residential property have been a hot topic.  As the real estate market sinks, many taxpayers find that they are paying taxes on real estate due to assessments made when the value of the property was 20-40% higher.

Up to now if you wanted to file a tax appeal and property assessed up to $750,000, you would have had to have filed in the County Board of Taxation.  Now, they have changed the law so that property assessed up to $1 million must also be filed at the County Board of Taxation. 

The fear is that self service taxpayers will be unaware of the change, file in Tax Court, and then miss the filing date on the county level.  There is no "oops" defense to  missing the filing deadlines.

The law change took place in an amendment to Rule 54:3-21 through Assembly Bill 4313.  The stated purpose of this change in law is to "decrease the overburdened Tax Court's caseload and allow these cases to be heard by county boards of taxation...".

Again, the critical issue is that if a person files a tax appeal in the wrong jurisdiction, you may be considered out of time to then re-file in the correct court of competent jurisdiction.

Specific questions on real estate tax appeals can be directed to my colleague Steve Loeb, Esq. in our Tax Department.

Image: Salvatore Vuono / FreeDigitalPhotos.net

Medicaid Annuity Upheld by Federal Court

Third Circuit Court of Appeals Elderlawanswers.com reports today that:

In a much-anticipated decision, the Third Circuit Court of Appeals has affirmed a U.S. district court ruling allowing a community spouse to purchase a DRA-compliant annuity to protect savings from the costs of her husband's nursing home care. Weatherbee v. Richman (3d Cir., No. 09-1399, Nov. 12, 2009)."

This is an incredibly important ruling.  New Jersey is in the 3rd Circuit, so this ruling may have application to New Jersey Medicaid cases.

The Deficit Reduction Act or "DRA" states that a purchase of a Medicaid Compliant Annuity is not a transfer of assets that creates a penalty period under Medicaid.  As I discussed at "Annuity Purchased by Spouse Tarnished in NJ - But is There Light from Other State's Analysis" New Jersey has not enforced the federal law. Instead New Jersey, like Pennsylvania (the state at issue in the case) took the position that a purchase of an annuity by a community spouse is a transfer that results in a penalty period - essentially, even though you used $200,000 to purchase an annuity that can only give you $3500 a month, you are still treated as owning the $200,000 and then penalized for not having it liquid to spend on nursing home care.

In the Weatherbee case, Mrs. Weatherbee purchased a Medicaid compliant annuity for $400,000, which paid her $4,423 a month.  Pennsylvania took the position that the $4,423 a month was an "available resource" that she could sell (i.e.: she could sell the income stream, get a lump sum amount, and spend that amount on care). Normally, an annuity payment is deemed income, and not an asset (assets have to be spent down for Medicaid, but income of the spouse not in the nursing home is not considered).

Pennsylvania's approach (which is similar to New Jersey's) was soundly rejected.  The Third Circuit Court of Appeals confirmed that "treating the income from an otherwise compliant annuity as an available resource is inconsistent with the treatment of annuities under the Medicaid Act."

My colleague Don Vanarelli has a lengthy post  at his blog on the Weatherbee case with some great insight into how it might be effective in New Jersey.   The issue is that while NJ is in the Third Circuit, there are issues of deference and authority between state and federal laws and courts. 

When it Snows - Clean Your Car! New Law Coming

Snow Covered CarAs winter approaches (which last weeks unexpected snow reminded us is close at hand) a point of irritation bubbles to the top again - trying to get somewhere and dodging the ice, snow and debris from the car in front of you.  You know the car I am talking about - it snowed 3 days ago, and the car in front of you is encased in a 4 inch shiny snow crust with a square cut into the windshield and a rectangle in the driver side window for viewing.  As you are driving behind it you can only watch as sheet after sheet of ice comes sliding off, into your window, and making you almost get into an accident because you can't see.

Well, good news is on they way.  According to the Daily Record "Legislation that would toughen New Jersey's notoriously weak snow-removal law passed the Senate and Assembly in June. Gov. Jon S. Corzine is expected to sign it".

The current law is ridiculous - "Under the 1997 state law, a driver can get a ticket for not clearing a vehicle — but only if the snow dislodges and causes an injury or property damage, and only in the unlikely event an officer is nearby or the victim has the wherewithal to jot down a license plate number." (emphasis added).

While the new proposed law sounds better - it "would create an "affirmative duty" for snow removal with fines of up to $75"  - there will be many exemptions.  These appear to be aimed at:

  1. not being responsible for snow accumulation while it is still snowing (reasonable, so long as you cleared your car before your started your drive - not just clear a circle and go),
  2. not more than 1 ticket in a day (ridiculous - clean off your car, and if one ticket doesn't motivate you, another one might), and 
  3. exempting commercial trucks that are enroute to a place with snow removal equipment (reasonable in the sense that a trucker can't really clean whole rig, but those trucks are a hazard after the storm has passed).  

In typical New Jersey fashion, a fund is supposed to be created with some of the ticket revenue to educate people about the law. Given the state of our State's finance, I think that adding the general revenues would be a better choice.

Libraries as a Lifeline

 I have always been a huge proponent of public libraries - after all, what could be better than free books?  Over the weekend a New York Times article caught my eye "In New Jersey, Libraries Are Lifelines for Needy".  Apparently, there is better stuff at your local library than free books - there is career research and word processing for those in transition, and information on help available to those in need (mortgage assistance, food stamps, subsidized child care).  

What impressed me was not that our libraries have these resources (as a regular patron I can attest that local libraries are a fountain of information), but that New Jersey's public librarians have recognized that many patrons seeking this information might too uncomfortable to ask for it (especially in their hometown).  So the state librarians came together and created gethelp.njlibraries.org.

The site "provides links to state agencies and nonprofits, and information on jobs, food assistance, military benefits, utility assistance and even free tax preparation for people with low incomes, disabilities or difficulty speaking English."  Among other categories there are compilations of services under the heading of New Jersey Financial Tools, New Jersey Work Tools, and New Jersey Parental Tools.  The is also a link for information for seniors under  Tools For Seniors.

New Jersey Taxpayers are Done - For this Year

Sunday September 6 was a banner tax for New Jersey residents - you won't find it on your calendar, but day 249 of the year was the day New Jerseyians finally paid their tax bill for the year.  For the first 249 days of the year New Jersey residents were working to pay for government spending programs - federal, state, local.  For the remaining 116 days of  the year, you work for yourself  - to pay mortgage, utilities, food, clothes, car, vacation, and all the things you value.

Americans for Tax Reform reports that New Jersey has the second longest cost of government time span:

Today is the day on which New Jerseyians have finally paid off the burden imposed by state, local and federal spending and regulations. While the national average fell on August 12 in 2009, taxpayers in the Garden State had to work an astounding total of 249 days out of the year to pay for the cost of government. Only one state, Connecticut, has a later COGD [Cost of Government Day] than New Jersey. 

Note that this is different from Tax Freedom Day, which was April 29 for New Jersey in 2009 (again, the second latest in the country).  According to the Tax Foundation, Tax Freedom Day is "calculated by dividing the official government tally of all taxes collected in each year by the official government tally of all income earned in each year."  Cost of Government Day is different, and later, because it is calculated by the cost of spending, a much greater number than income these days.  For a full breakdown of each states Cost of Government Day, look to Americans for Tax Reform.

I love living in New Jersey, and taxes are necessary to run the government and pay for services, but 48 other states do a better job than we do - not something to be proud of.  

Fleeing Florida? More News on Florida Exodus

I love being ahead of a news story.  

I blogged back in August: Moving From Florida?? A Reverse Trend that May Prove Expensive for Residents -  noting that Florida is seeing its first population decline since demilitarization after World War II and that its tax revenue system may be to blame.  The result may be that Florida may be losing its status as the go-to residence for New Jerseyans looking to get out from under New Jerseys tax system particularly its low $675,000 state tax exemption.

 That post of course raises the question of where else is a person to go?  I noted in "Southern States a Tax Lure for New Jersey Residents?" that other states are going out of their way to try to attract retirees as new residents through the structuring their state tax system to give retirees a financial incentive to transplant to sunnier climates.

Now it seems that TIME magazine has caught up to the story in their feature "Florida Exodus: Rising Taxes Drive Out Residents".  TIME notes:

There are many things public officials probably shouldn't do during a severe recession, but no one seems to have told the leaders in Floridaabout them. One thing, for instance, would be giving a dozen top aides hefty raises while urging a rise in property taxes, as the mayor of Miami-Dade County recently did. Or jacking up already exorbitant hurricane-insurance premiums, as Florida's government-run property insurer just did. Or sending an army of highly paid lobbyists to push for a steep hike in electricity rates, as South Florida's public utility is doing.

For states, attracting new residents is good for business - more people equals more revenue. If Florida can't manage its budget in a way that will continue to attract residents, perhaps other states will start offering "deals" to retirees so that dollars will go further in your silver years. perhaps say "CA$H for Change of Address" program is in the making.